Jio is churning out ARPU of Rs 156.4, with 138.6 million customers

Yesterday, Reliance Industries presented their results of Q2 of 2017-18, and the numbers are pretty decent, as their positive Petrochemical margins surprised everyone.

However, it is the performance of their 1-year old Ji which stunned the audience of financial analysts. Within a year of its launch, Jio is churning out Average Revenue Per User of Rs 156.40, which is actually better than the industry average.

Considering the fact that Jio services were free till April this year, the results are no doubt beyond expectations. In fact, both EBIT (earnings before interest and taxes) and EBITDA (earnings before interest, taxes, depreciation and amortization) for Reliance Industries are positive, which shows us that Mukesh Ambani’s gamble is finally paying off, despite offering free telecom services for a long time.

Will Jio be able to continue the good work into the next quarter? We will soon find out..

Jio’s 1st Financial Report Card: Data Never Lie!

This quarter, Reliance Industries presented the first full-fledged financial report card for their telecommunication business arm Jio, and the numbers are actually impressive, as analysts weren’t able to predict this revenue.

For the September quarter, Jio has turned EBITDA positive, which is a big deal in the telecom industry. Overall, EBITDA margin stood at 23.5%, which is a stunning performance.

By the end of September, Jio reported 138.6 million customers, and total revenues generated was Rs 6147.06 crores.

This translates into average revenue per user (ARPU) of Rs 156.4 per month, which is as good as the industry average.

During Q2 (July-August-September), Jio was able to add 15.3 million net subscribers and per capita voice consumption stood at 626 minutes per month, which is their highest till date. At the same time, 178 crore hours of videos were consumed on their network for the last quarter.

Reliance issued a statement, saying, “We are confident that Jio will bring significant benefits to the Indian economy and the Indian customers and will take India to a much higher pedestal. We are focused on providing multi-layered digital services on top of the basic connectivity service to optimally utilize our world class infrastructure.”

As TRAI has now reduced Interconnect Usage Charges, revenues of Jio are expected to further improve.

The Company has issued and allotted 308,03,34,238 equity shares to the eligible holders of equity shares on the book closure date (i.e., 09th September, 2017) as bonus equity shares by capitalizing reserves on 13th September, 2017.

Mohul keenly observes the nuances of Indian startup world; and tries to demystify the secrets behind Technology, Marketing, Mobile and Internet. He is a Writer by passion, Marketer by choice and Entrepreneur by compulsion. Follow him on Twitter here: @_mohul